Top five short term trading picks in range bound market

MUMBAI - The Sensex is witnessing a range-bound session with positive bias led by gains in technology, FMCG, realty and banks. According to analysts, the market will take cues from the parliament proceedings during Winter Session for direction.

Following are the top five trading picks that stand a chance to give good returns in the short to medium term.

The stock is showing strong momentum even after the market pressure. It has seen decent buying with fresh addition of long positions followed by short covering. It is trading near life-time high territory and has potential to head towards Rs 975 levels.

One can buy the stock with stoploss of Rs 925 for the upside target of Rs 970-975 levels.

2) SUN TV:

The stock is holding above Rs 372 levels on rising volumes. Open interest activity in the stock is also visible. It is trading above weekly breakout levels which would take stock to Rs 390 levels.

One can buy the stock with stop loss of Rs 363 levels for the upside target of Rs 390 levels.

Somil Mehta, Senior Technical Analyst, Sharekhan

3) Reliance Communications:

The stock has taken support ar 20-40 DMA. The short term momentum indicator on the hourly charts has also given a positive crossover. It is expected to bounce up to Rs 65.

Buy the stock with a stoploss of Rs 58 for a short term target of Rs 65.

4) Cipla:

The stock has broken out of triangular pattern on the daily chart. The medium term bias would remain positive as the momentum indicator on daily chart has given a buy signal.

Buy the stock with a stoploss of Rs 378 for a target of Rs 410.

Mitesh Thacker, Technical Analyst, miteshthacker.com

5) DLF: The stock has been trading sideways after rallying from the lows of Rs 169.75 to the highs of Rs 244.95 level. This sideways consolidation has taken a form of a head and shoulder pattern. Traders should not that this is a bearish pattern, indicating fresh decline after a consolidation at higher levels.

The neckline is placed around Rs 197 level. The stock is also finding resistance from cluster of moving averages for past couple of days. The momentum indicator is trading in a sell mode.